Summit Buys Westminster Center

Westminster Center, a 39-acre shopping center anchored by a Lucky grocery store, an Edwards Theatres complex and a Home Depot, has been sold to a Santa Monica-based real estate investment firm that describes itself as an expert in turning around properties that lost considerable value during California’s long real estate recession.

Summit Commercial Properties is specifically interested in buying grocery-retail centers, such as the Westminster project, that were built during the 1980s when property values soared and rents skyrocketed.

“Since rents have gone down, many of the owners don’t have capital for tenant improvements or basic maintenance such as resurfacing parking lots and fixing roofs,” said Jack Mahoney, president of Summit Commercial Properties. “And many owners can’t service the debt on the property.”

In recent months, Santa Monica-based Summit has purchased centers in Duarte, Castro Valley and Benecia that, along with the Westminster property, have a value exceeding $100 million.

The company hopes to eventually purchase as many as 40 properties that include major grocery chains as tenants and that are at intersections with heavy vehicle traffic.

“As consumer buying patterns continue to shift toward convenient one-stop shopping, grocers need more floor space and upgraded facilities to accommodate pharmacies, fast food, child play areas, clothing, videos, music and banking,” Mahoney said. “The industry is experiencing a major shift, and we can provide the capital these centers need to stay competitive.”

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Greg Johnson covers retail businesses and restaurants for The Times. He can be reached at (714) 966-5950 and at [email protected]